Deal of the Day Offers – What you need to know

We’ve all heard of the success of the many deal of the day websites like the Groupon, the Scoopons or any other Oupons there are out there.

Consider all aspects of your offer otherwise you may get caught out or even lose money

Today’s pointers relate to what you need to be looking out for before you sign up to one of these types of deals for your business.

1. Do your research – You need to consider things like: when do you get paid so at what time you actually receive the money into your bank account.
2. What are the minimums – So how many ‘deals’ do you need to sell before the deal becomes live?
3. Breakeven – How many deals do you need to sell to break even? To do this you need to know the exact costs involved not only to run the deal but also to deliver on the offer or deal. This includes considering direct and hidden costs for the deal.
4. Time – You need to take into account the time spent and any extra time spent by yourself or your staff to deliver the deal. You also need to remember that every minute spent serving these ‘deal’ clients, you’re taking away time from full paying clients with the higher profit.
5. Retention – Consider the likelihood of these ‘deal’ customers returning to you. If this deal doesn’t make a huge profit but you gain high quality leads that are going to come back to you again in the future and be long-serving clients, moving down your funnel and generating revenue in the future, then go for it!
6. Spread them out – When it comes to redemption of these ‘deals’, don’t have all your ‘deal’ clients come in on the one day or the same week. Make sure you spread these out so you continue to serve your cash flow. If you’re not earning at least the standard amount of revenue in a day or week your cash flow will be negatively affected leaving a huge gap, especially if you’ve been paid in advance from the deal site for these customers.

So now you have some tips to consider before deciding whether it is feasible to partake in a ‘deal of the day’ offer for your business. Let us know in the comments of your experience with these types of offers.